Economics Article Review on Here’s what’s Going Right, and Wrong, in the U.S. Economy
The present paper presents an analysis of an article printed in the economic trend of The New York Times on July 29th, 2016. There are several elements which are evident in the article. The first one is the eye catching title; Here’s what’s Going Right, and Wrong, in the U.S. Economy. The second one is the byline, which informs us the date of the article and the author; Neil Irwin, who is a senior economics correspondent for The New York Times. It is followed by the lead of the article in which, Neil points out the relevance of the article at a time when economy is recovering after seven years, and only three months to the election.
The author bases his article on the two Gross Domestic Products’ (GDP) reports which indicated that, the economy was facing a smooth sail despite some worrying trends. He explains that according to the report, the GDP portrayed a 2.4% growth of the economy, with consumer spending shooting up by 4.2%. He linked it to the decrease in the prices of fuel as well as the improvements in the job market. Conversely, Neil mentions low investment trends and low productivity growth as the main hindrances of economic development. In conclusion, Neil recommends that the equilibrium between the positive and negative aspects should be reached, for the US to attain the long-term economic growth.
The economic principle applicable to this article is as follows: when people choose one thing they give up something else (Joshua et al 98). It means that, individuals constantly choose how to allocate their limited resources in order to meet their limitless requirements. From this article, it is evident that the rate of employment has gone up, thus increasing the income. It has further led to the increase of consumer spending, resulting into higher economic growth. Remarkably, before the incomes were raised, people made fewer purchases. It means that they had constant preference to buying the essentials, thus creating an opportunity cost for the goods and services that were considered less necessary. Similarly, the same pattern is evident when the consumers choose to use their money on purchasing, thus foregoing the need to invest. It creates an opportunity cost on investment, which eventually leads to a decline in economy because; investment is also an important aspect in economic growth.
Also, Neil notes that, the decline in the prices of oil and natural gas had discouraged investors from investing in energy exploration. Notably, the investors had chosen to invest in other areas which were more profitable to them, thus creating an opportunity cost in the energy exploration sector. It in turn caused a reduction in the economic growth. In addition, the higher workers’ output considerably enhances economic growth. It depicts that, low production brings about an opportunity cost in the development of the economy, resulting into a decline in the economic growth as evident in the article.
In conclusion, significant elements exhibited in the article include the title, byline, lead, body, and conclusion. The main principle of economics applicable to this article is: when people choose one thing they give up something else. Throughout the article, different choices are seen to create an opportunity cost of the choice that was to forgone. It is, therefore, important to determine a balance in all the factors that affect the economy, in order to achieve a long-term economic growth.
Gans, Joshua, et al. Principles of Economics. Cengage Learning, 2011.
Irwin, Neil. “Here’s What’s Going Right, and Wrong, in the U.S. Economy.” New York Times 2.9 (2016): 2016. WEB 20/02/2017https://www.nytimes.com/2016/07/30/upshot/heres-whats-going-right-and-wrong-in-the-us-economy.html?_r=0